Credit card declines are more than just a headache for your business and your members. They negatively impact on your bottom line. First, there's the labor cost to your staff who are spending countless hours tracking those members down to update payment information. Then there's the lost membership revenue that comes from members who decide to terminate their membership when you reach out to update payment information. And finally, there's an authorization fee per decline which typically ranges between $0.06 - $0.08. Those costs can really add up!
Use this calculator (if you don't see the calculator try refreshing your browser!) to see how invalid and expired card declines are impacting your organization in the following areas:
- Labor Costs
- Lost Membership Revenue
- Authorization Fees
With a 40% recovery rate (conservative estimate from the market), Daxko Payment Services' proactive card account updater will reduce the number of declined cards, preventing decline fees and drastically cutting down on staff time spent contacting members regarding invalid and expired credit cards. Wouldn’t you rather their time be spent on more meaningful activities to your organization?
Preventing declines also keeps members from leaving. Contacting members regarding returned payments from expired or invalid cards often triggers member termination. We have found that 1 in 3 members will leave within 30 days of this happening. Think of all the future membership revenue you prevent from walking out the door when you never have to have those conversations in the first place.
Interested in how Daxko can help improve your bottom line and member retention with integrated payments? Read this overview of Daxko Payment Services.